Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.

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How the Chavez robolution spent $155 million on housing and got nothing in return

August 22, 2010

Remember Maletagate? When the case was being discussed, we all learned that Antonini (the guy with the suitcase with $800,000), Duran and Kauffman were involved, among other things, in a housing project, whereby an Uruguayan company would sell prefab houses to Venezuela, as part of their aid to the revolution to solve the housing crisis.

Well, in the Comptroller’s report to the National Assembly, there is mention to one such contract, but the specific name of the company in Uruguay is not specified. But the coincidence of countries (The Comptroller does say it was a Uruguayan company) is simply uncanny.

The Comptroller’s report says that the Ministry of Housing paid US$ 155.47 million to this Uruguayan concern to provide 12,000 prefab housing kits and the corresponding technical assistance. That comes to about $13,000 per prefab house, or Bs. 27.855 at the rate of exchange at that time, not extremely cheap for a prefab house then, but no outrageously expensive either.

Guess how many houses were built?

11

Not 11,000, just eleven, like in 6+5, or 7+4. That’s it. ELEVEN.

That’s about US$ 14 million per prefab house. Even worse, the same report by the Comptroller says that even the eleven houses built had to be finished with local construction material, because not a single one of the prefab kits was sent complete.

Fortunately (I guess), only 45.47% of the contract was paid, adding to it some US$ 13.17 in “operating expenses which the Comptroller says: “there is insufficient documentation to determine the exactitude, sincerity and legality of these operations”.

Where is the Prosecutor on all this? Who was in charge of the Ministry? The Project? who were the intermediaries? Were they the same individuals involved in Maletagate? Will they go after anyone?

These are all silly questions. Clearly there is no intention of going after anyone. This is, like Pudreval and others, a project set up to rob and steal, not to get anything done. And those involved are high level Chavistas that nobody wants to go after. Why doesn’t the Comptroller say which Uruguayan company was involved? Which Minister approved payment? Come on! These guys could even be running for office in September, but Chavismo has no interest in barring them from running.

Such are the ways of the robolution, spend 155 million dollars to solve a problem and not even begin doing it. For all intents and purposes, 11 out of 12,000 is as good as saying no houses were built. But a few Chavista millionaires were certainly created.

30 Responses to “How the Chavez robolution spent $155 million on housing and got nothing in return”

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And the really sad part about this blatant robbery/waste of the public’s money is that it is being paid for with borrowed money which today’s children and possibly their children will have to work to pay back.

Can you provide a link to the report from the Comptroller, and the specific mention in it of what you are saying. I would love to circulate this widely, but with the source of the information available.
Thanks!

Deana: In my humble opinion, Venezuela is screwed. That is bad. But the really ugly thing is that Venezuelans will probably have to be screwed to the point where those that “don’t care” start to hurt seriously and then get desperate. And then get shot by the Army as happened in 1989.

Then, when we really score a glancing hit with NATIONAL FAILURE there will be a chance to begin building a country on a sane enough basis. That is the “good” part.

That is true. So true of all Venezuelans. Sadly, it will be an even starker truth for Venezuelans, particularly those who still cling to chavismo for convenience or belief. Call me vengeful. I don’t wish it, but I expect that someday I will watch (from abroad I hope) images of a much larger and bloodier version of the Caracazo that will make fireworks for all the world to watch.

Venezuela sent 100million dollars to Honduras for emergency problems related to hurrican, etc. Only 2 million dollars arrive. Where are the 98million left? The press said it was “transfer” to the precidency office (Mel Z)

My in laws were visiting recently, so when I asked how things were, father in law replies sarcastically: “Fucking excellent! Now we have a minister in the family!”

I replied: “How come? Lenin has been promoted?”

FIL: “No, Ricardo has been appointed housing minister by Chavez…”

Me: “Ricardo? Housing minister? Is he not a forest engineer? What the fuck does he know about housing?

FIL: “He may not know much, but he’s good friends with Jaua. I tell you, in the last couple of weeks, since the regime let it be known that he was the new housing minister, people that haven’t talked to me, or called, in 20 years started ringing…”

For the record, Ricardo Molina Peñaloza, new minister of housing, is completely incapable of sorting out the housing problem in Venezuela. He’s just another utterly incompetent radical, who will laugh and applaud every utterance from the caudillo. The saddest part is, that such people are running Venezuela. There’s no hope for the land of grace, no hope whatsoever.

All true, and yet, NO BODY really cares. What I mean is, those getting the money certainly don’t want things changed. The poor are also happy (“thrilled?”) with the direction of the country. (As previously mentioned, they just want the rich brought down to their level. And check, that is happening.)

Which leaves us with the core opposition – who certainly care, but represent no more than 25% of the population.

And the Nini’s. They are the independent and swing ‘voters’. Unfortunately, they don’t care either. And if they haven’t figured it all out by now, in English, Spanish or any other language, then guess what?

THEY’RE NEVER GOING TO.

Which means, simply, that Venezuela is “LOST” and you (the 25% of the oppo) are totally screwed. FLEE WHILE YOU CAN.

Don’t worry about leaving it all behind. Worry about getting out with your loved ones while the getting is good. (See Cuba, Pedro Pan, et al)